Background Note: Germany

PA
Source: Office of Public Communication, Bureau of Public
Affairs
Description: Historical, Political and Economic Overviews of the
Countries of the World
Date: Jun, 15 19926/15/92
Category: Country Data
Region: Europe
Country: Germany
Subject: Travel, History, International Organizations,
Trade/Economics, Military Affairs, Cultural Exchange,
State Department
[TEXT]

Official Name:

Federal Republic of Germany

PROFILE

Geography

Area:

357,000 sq. km. (137,838 sq. mi.); about the size of
Montana.

Cities:

Capital--Berlin (population about 3.4 million). Seat
of government--Bonn (pop. 287,000). The permanent seat of
government for a unified Germany will be addressed by the all-
German Parliament elected on December 2, 1990. Other cities--
Hamburg (1.6 million), Munich (1.2 million), Cologne (946,000),
Frankfurt (635,000). (Dec. 1990 est.)

Terrain:

Low plain in the north; high plains, hills,
and basins in the center and east; mountainous Alpine region in the
south.

Climate:

Temperate; cooler and rainier than much of the
US.

People

Nationality:

Noun and adjective--German(s).

Population:

About 79 million (Dec. 1990 est.).

Ethnic groups:

Primarily German; Danish minority in the
north, Serbian (Slavic) minority in the east.

Language:

Education:

Health (in the original 11 states):

Work force:

39 million (1990 estimate). Includes the 11
million workers in the former GDR.

Government

Type:

Federal republic.

Founded:

1949 (Basic Law, i.e., constitution, promulgated
on May 23, 1949). On October 3, 1990, the Federal Republic of
Germany and the German Democratic Republic unified in
accordance with Article 23 of the FRG Basic Law.

Exchange rate (November 1990):

1.50 Deutsche marks=US
$1.

Membership in International Organizations

Council of Europe, North Atlantic Treaty Organization (NATO),
INTELSAT, European Community (EC), Western European Union
(WEU), Organization for Economic Cooperation and Development
(OECD), and the United Nations and UN-related agencies,
including the General Agreement on Tariffs and Trade (GATT),
International Atomic Energy Agency (IAEA), International Bank
for Reconstruction and Development (World Bank), and
International Monetary Fund (IMF).

PEOPLE

The population of the unified FRG is primarily German;
however, there are a substantial number of foreign guest
workers and their dependents. An ethnic Danish minority
lives in the north, and a small Slavic minority known as the
Sorbs lives in eastern Germany. Renowned for their economic
productivity, Germans are well-educated. Since the end of
World War II, the number of youths entering universities has
nearly tripled, and the trade and technical schools in the
original 11 states of the FRG are among the world's best.
German culture has produced some of the greatest artists and
intellectuals of all time. Composers, artists, writers, scholars,
and scientists have always enjoyed prestige in Germany.
With per capita income levels approaching $20,000 in the
original 11 states, postwar Germany has become a broadly
middle class society. A generous social welfare system
provides for universal medical care, unemployment
compensation, and other social needs. Modern Germans also
are mobile; millions travel abroad each year.
With unification on October 3, 1990, the FRG has started the
major task of bringing the standard of living of Germans in
the former GDR up to the levels of western Germany. It
appears that this will be a lengthy and difficult process,
due to the relative inefficiency of the industrial
enterprises in the former GDR, the poor infrastructure in
this area, the environmental damage in eastern Germany
brought on by years of mismanagement under communist rule,
and difficulty in resolving property ownership in the former
GDR.

HISTORY

Germanic tribes, migrating south and west, entered the
present territory of Germany nearly 4,000 years ago. They
pushed back the Celts and were strongly established before
encountering the Romans moving north under Varus, one of
Augustus' generals. The Germans annihilated the Roman forces
and killed Varus in the battle of the Teutoburg Forest in 9 AD,
effectively stopping Roman expansion on the Danube-Rhine line.
Thus, much of Germany did not experience Latin culture
directly and adopted Christianity later than did the Roman
world. The baptism of Clovis in 496 AD opened the way for
widespread conversion of the Germanic tribes and culminated
three centuries later with the crowning of "Karl the Great"
(Charlemagne) in 800 as Holy Roman Emperor. For the next
1,000 years, decentralizing forces dominated German politics,
leaving power largely in the hands of local princes, often
with devastating consequences. The Thirty Years' War (1618-
48), a series of conflicts between Protestant and Catholic
forces, decimated Germany's population. After the war, an
uneasy balance remained between Protestant and Catholic
states, which continued to war against each other
periodically.
The rise of Prussian power in the 19th century, supported by
growing German nationalism, eventually ended the inter-state
fighting and resulted in the formation of the German Empire
in 1871 under the chancellorship of Otto von Bismarck.
Although authoritarian in many respects, the empire
eventually permitted the development of political parties and
Bismarck was credited with passing the most advanced social
welfare legislation of the age. Dynamic expansion of
military power, however, contributed to tension on the
continent. The fragile European balance of power broke down
in 1914, and World War I left millions dead and led to the
collapse of the empire.

The Weimar Republic

The postwar Weimar Republic (1919-33) sought to draw on
Germany's liberal traditions but was handicapped by terrible
economic problems--the inflation of the early 1920s and the
post-1929 world depression--as well as the political legacy
of the Versailles Treaty, which imposed a heavy burden of
reparations and loss of territory. The new experiment in
republican, parliamentary democracy was unable to harness the
resulting surge of political conflicts, and the republic
suffered from a succession of weak governments formed by
multi-party coalitions.
The National Socialist (Nazi) Party, led by a demagogic ex-
corporal, Adolf Hitler, stressed nationalist themes, such as
the alleged betrayal of Germany by German republican
representatives at Versailles, promised to put the unemployed
back to work, and blamed many of Germany's ills on alleged
Jewish conspiracies. Its electorate expanded rapidly in the
early 1930s, but the Nazi party never achieved a majority
prior to coming to power. Only after months of deadlock was
Hitler asked to form a government as Reich Chancellor in
January 1933. After President Paul von Hindenburg died in
1934, Hitler assumed that office as well. Once in power,
Hitler and his party first undermined then abolished
democratic institutions and opposition parties and installed
a program of racism that resulted in the deliberate,
widespread extermination of Jews and other minority groups
during World War II. In the 1930s, Hitler also began to
restore Germany's economy and military strength. His
ambitions led Germany into launching World War II and
suffering destruction, defeat, and loss of territory.
After Germany's unconditional surrender on May 8, 1945, the
United States, the United Kingdom, and the USSR occupied the
country and assumed responsibility for its administration.
The commanders-in-chief exercised supreme authority in their
respective zones and, sitting as the Allied Control Council
(ACC), acted in concert on questions affecting the whole
country. France was later invited to join the ACC and was
given a separate zone of occupation.
At Potsdam in August 1945, the United States, the United
Kingdom, and the Soviet Union agreed to a broad program of
decentralization, treating Germany as a single economic unit
with some central administrative departments. These plans
failed, primarily because of inter-Allied conflict. The
turning point came in 1948 when the Soviets withdrew from the
Four Power governing bodies and blockaded Berlin.

Political Developments in West Germany

The United States and the United Kingdom moved to establish a
nucleus for a future German government by expanding the size
and powers of the German Economic Council in their two zones.
The program provided for a West German constituent assembly,
an occupation statute governing relations between the Allies
and the German authorities, and the economic merger of the
French with the British and American zones.
On May 23, 1949, the Basic Law, or constitution, of the
Federal Republic of Germany was promulgated. The first
federal government was formed by Konrad Adenauer on Sept. 20,
1949. The next day, the occupation statute came into force,
granting full powers of self-government with certain
exceptions.
The FRG quickly progressed toward fuller sovereignty and
association with European neighbors and the Atlantic
community. The London and Paris agreements of 1954 restored
full sovereignty to the FRG when they went into effect on May
5, 1955 and opened the way for German membership in the North
Atlantic Treaty Organization (NATO) and the Western European
Union (WEU).
The three Allies retained occupation powers in Berlin and
certain responsibilities for Germany as a whole. Under the
new arrangements, the Allies stationed troops within the FRG
for NATO defense, pursuant to stationing and status-of-forces
agreements. With the exception of 45,000 French troops,
Allied forces were under NATO's joint defense command.
Political life in the FRG was remarkably stable and orderly.
The Adenauer era (1949-63) was followed by a brief period
under Ludwig Erhard (1963-66) who, in turn, was replaced by
Kurt Georg Kiesinger (1966-69). Kiesinger's 1966-69 "Grand
Coalition" included the CDU/CSU and the Social Democratic
Party (SPD). Governments between 1949 and 1966 were all
formed by the united caucus of the Christian Democratic Union
(CDU) and Christian Social Union (CSU), either alone or in
coalition with the smaller Free Democratic Party (FDP).
In the 1969 election, the Social Democratic Party (SPD),
headed by Willy Brandt, gained enough votes to form a
coalition government with the FDP. Chancellor Brandt
remained head of government until May 1974, when he resigned
after a senior member of his staff was arrested and accused
of being an officer in the East German intelligence service.
Finance Minister Helmut Schmidt formed a government and
received the unanimous support of coalition members. Hans-
Dietrich Genscher, a leading FDP official, became the vice
chancellor and foreign minister. Schmidt, a strong
supporter of the European Community (EC) and the Atlantic
alliance, emphasized his commitment to "the political
unification of Europe in partnership with the USA."
In October 1982, the SPD/FDP coalition fell apart and the FDP
joined forces with the CDU/CSU to elect CDU Chairman Helmut
Kohl as chancellor. Following national elections in March
1983, Kohl emerged in firm control of both the government and
the CDU. The CDU/CSU fell just short of an absolute
majority, due to the entry into the Bundestag of the Greens,
who received 5.6% of the vote.
In January 1987, the Kohl/Genscher government was returned to
office, but the FDP and the Greens gained at the expense of
the larger parties. Kohl's CDU and its Bavarian sister
party, the CSU, slipped from 49% of the vote in 1983 to 44%.
The SPD fell to 37%. Long-time SPD Chairman Brandt
subsequently resigned in April 1987 and was succeeded by
Hans-Jochen Vogel. The FDP rose from 7% to 9%, their best
showing since 1980. The Greens also significantly
strengthened their place in the Bundestag, rising from 5.6%
(1983) to 8.3% (1987).

Political Developments in East Germany

In the Soviet zone, the Social Democratic party was forced to
merge with the Communist party in 1946 to form a new party,
the Socialist Unity Party (SED). The October 1946 elections
resulted in coalition governments in the five Land (state)
parliaments with the SED as the undisputed leader.
A series of people's congresses were called in 1948 and early
1949 by the SED. Under Soviet direction, a constitution was
drafted on May 30, 1949, and adopted on October 7, which was
celebrated as the day when the German Democratic Republic was
proclaimed. The People's Chamber (Volkskammer), the lower
house of the GDR parliament, and an upper house, the States
Chamber (Laenderkammer), were created. (The Laenderkammer
was abolished in 1958.) On October 11, 1949, the two houses
elected Wilhelm Pieck as president and an SED government was
set up. The Soviet Union and its East European allies
immediately recognized the GDR, although it remained largely
unrecognized by non-communist countries until 1972-73.
The GDR established the structures of a single-party,
centralized communist state. On July 23, 1952, the
traditional Laender were abolished and, in their place, 14
Bezirke (districts) were established. All effective
government control was in the hands of the SED and almost all
important government positions were held by SED members.
The National Front was an umbrella organization nominally
consisting of the SED, four other political parties
controlled and directed by the SED, and the four principal
mass organizations (youth, trade unions, women, and culture).
However, control was clearly and solely in the hands of the
SED. Balloting in GDR elections was not secret. As in other
Soviet bloc countries, electoral participation was
consistently high, with nearly unanimous candidate approval.

Inter-German Relations

The constant stream of East Germans fleeing to West Germany
placed great strains on FRG-GDR relations in the 1950s. On
August 13, 1961, the GDR began building a wall through the
center of Berlin, effectively dividing the city and slowing
the flood of refugees to a trickle. The Berlin Wall became
the symbol of the East's political debility and the division
of Europe.
In 1969, FRG Chancellor Brandt announced that the FRG would
remain firmly rooted in the Atlantic alliance but would
intensify efforts to improve relations with Eastern Europe
and the GDR.
The FRG commenced its Ostpolitik by negotiating non-
aggression treaties with the Soviet Union, Poland,
Czechoslovakia, Bulgaria, and Hungary. The FRG's relations
with the GDR posed particularly difficult questions. Though
anxious to relieve serious hardships for divided families and
to reduce friction, the FRG under Brandt was intent on
holding to its concept of "two German states in one German
nation."
Relations improved, and, in September 1973, the FRG and the
GDR were admitted to the UN. The two Germanys exchanged
permanent representatives in 1974, and, in 1987, GDR head of
state Erich Honecker paid an official visit to the FRG.

German Unification

During the summer of 1989, rapid change in the GDR ultimately
led to German unification. Growing numbers of East Germans
emigrated to the FRG via Hungary after the Hungarians decided
not to use force to stop them. Thousands of East Germans
also tried to reach the West by staging sit-ins at FRG
diplomatic facilities in other East European capitals. The
exodus generated demands within the GDR for political change,
and mass demonstrations in several cities--particularly in
Leipzig--continued to grow. On October 7, Soviet leader
Mikhail Gorbachev visited Berlin to celebrate the 40th
anniversary of the establishment of the GDR and urged the
East German leadership to pursue reform.
On October 18, Erich Honecker resigned as head of the SED and
head of state and was replaced by Egon Krenz. But the exodus
continued unabated, and pressure for political reform
mounted. On November 4, a demonstration in East Berlin drew
an estimated 500,000--1 million East Germans. Finally, on
November 9, the Berlin Wall was opened, and East Germans were
allowed to travel freely. Thousands poured through the Wall
into the western sectors of Berlin, and on November 12, the
GDR began dismantling it.
On November 28, FRG Chancellor Kohl outlined a 10-point plan
for the peaceful unification of the two Germanys based on
free elections in the GDR and a unification of their two
economies. In December, the GDR Volkskammer eliminated the
SED monopoly on power, and the entire Politburo and Central
Committee--including Krenz--resigned. The SED changed its
name to the Party of Democratic Socialism (PDS) and the
formation and growth of numerous political groups and parties
marked the end of the former communist system. Prime
Minister Hans Modrow headed a caretaker government which
shared power with the new democratically oriented parties.
On December 7, 1989, agreement was reached to hold free
elections in May 1990 and rewrite the GDR constitution. On
January 28, all the parties agreed to advance the elections
to March 18, primarily because of an erosion of state
authority and because the East German exodus continued with
over 117,000 leaving for the West in January and February
1990.
In early February 1990, the Modrow government's proposal for
a unified, neutral German state was rejected by Chancellor
Kohl, who affirmed that a unified Germany must be a member of
NATO. Finally, on March 18, the first free elections were
held in the GDR, and a government led by Lothar de Maiziere
(CDU) was formed under a policy of expeditious unification
with the FRG. The freely elected representatives of the
Volkskammer held their first session on April 5, and the GDR
peacefully evolved from a communist to a democratically
elected government. Free and secret communal (local)
elections were held in the GDR on May 6, and the CDU again
won. On July 1, the two Germanys entered into an economic
and monetary union.

Four Power Control Ends

During 1990, in parallel with internal German developments,
the Four Powers--the United States, Britain, France, and the
Soviet Union--negotiated to end Four Power reserved rights
for Berlin and Germany as a whole. These "Two-plus-Four"
negotiations were mandated at the Ottawa Open Skies
conference on February 13, 1990. The six foreign ministers
met four times in the ensuing months in Bonn (May 5) , Berlin
(June 22), Paris (July 17), and Moscow (September 12). The
Polish Foreign Minister participated in that part of the
Paris meeting that dealt with the Polish-German borders.
Of key importance was overcoming Soviet objections to a
united Germany's membership in NATO. This was accomplished
in July when the alliance--led by President Bush--issued the
London Declaration on a transformed NATO. On July 16,
President Gorbachev and Chancellor Kohl announced agreement
in principle on a united Germany in NATO. This cleared the
way for signing the "Treaty on the Final Settlement With
Respect to Germany" in Moscow on September 12.
In addition to terminating Four Power rights, the treaty
mandates the withdrawal of all Soviet forces from Germany by
the end of 1994, makes clear that the current borders are
final and definitive, and specifies the right of a united
Germany to belong to NATO. It also provides for the
continued presence of British, French, and American troops in
Berlin during the interim period of the Soviet withdrawal.
In the treaty, the Germans renounced nuclear, biological, and
chemical weapons and stated their intention to reduce German
armed forces to 370,000 within 3-4 years after the
conventional armed forces in Europe (CFE) agreement (signed
in Paris on November 19, 1990) enters into force.
Conclusion of the final settlement cleared the way for
unification of the FRG and GDR. Formal political union
occurred on October 3, 1990, with the accession (in
accordance with Article 23 of the FRG's Basic Law) of the
five Laender, which had been reestablished in the GDR. On
December 2, 1990, all-German elections were held for the
first time since 1937. The CDU/CSU received 44% of the vote
and the FDP received 11%, giving the governing coalition 55%
of the vote and 398 of 662 seats in the Bundestag. The SPD
opposition won 34% of the vote and 239 seats. Under the
special provisions of the first all-German elections, parties
in the former GDR who received 5% of the vote in that area
were also able to receive representation. The Party of
Democratic Socialism received 10% of the vote in the former
GDR and 17 seats in the Bundestag, and an alliance of the
Greens and several left-wing organizations (Alliance 90) won
6% of the vote in East Germany and 8 Bundestag seats.
However, in West Germany, since the Greens won only 4.7% of
the vote, they did not receive any Bundestag seats.

GOVERNMENT

The government is parliamentary and based on a democratic
constitution that emphasizes the protection of individual
liberty and divided power in a federal structure. The
chancellor (prime minister) heads the executive branch of the
federal government. The president's duties (chief of state)
are largely ceremonial; power is exercised by the chancellor.
Although elected by and responsible to the Bundestag (lower
and principal chamber of the parliament), the chancellor
cannot be removed from office during a 4-year term unless the
Bundestag has agreed on a successor.
The Bundestag, also elected for a 4-year term, consists of
662 deputies. The first elections for an all-German
Bundestag were held on December 2, 1990. The Bundesrat
(upper chamber or Federal Council) consists of 68 members who
are delegates of the 16 Laender. The legislature has powers
of exclusive jurisdiction and concurrent jurisdiction (with
the Laender) in fields specifically enumerated by the Basic
Law. The Bundestag bears the major responsibility, and the
role of the Bundesrat is limited except in matters concerning
Laender interests, where it can exercise substantial veto
power.
The FRG has an independent federal judiciary consisting of a
constitutional court, a high court of justice, and courts
with jurisdiction in administrative, financial, labor, and
social matters. The highest court is the Federal
Constitutional Court which ensures a uniform interpretation
of constitutional provisions and protects the fundamental
rights of the individual citizen as defined in the Basic Law.

Principal Government Officials

President--Richard von Weizsaecker
President of the Bundestag--Rita Suessmuth (CDU)
Chancellor--Helmut Kohl (CDU)
Vice Chancellor--Hans-Dietrich Genscher (FDP)
Minister of Defense--Gerhard Stoltenberg (CDU)
Minister for Foreign Affairs--Hans-Dietrich Genscher (FDP)
Ambassador to the US--Dr. Juergen Ruhfus
Ambassador to the UN--Detlew Graf zu Rantzau
The FRG maintains an embassy in the United States at 4645
Reservoir Road NW, Washington, DC 20007 (tel. 202-298-4000).
FRG consulates general are located in Atlanta, Boston,
Chicago, Detroit, Houston, Los Angeles, San Francisco,
Seattle, and New York. Consulates are located in Miami and
New Orleans.

Political Parties

--

Christian Democratic Union/Christian Social Union
(CDU/CSU):

An important aspect of postwar German politics
has been the emergence of a moderate Christian party, the
Christian Democratic Union, operating with a related Bavarian
party, the Christian Social Union. Although each party
maintains its own structure, the two form a common caucus in
the Bundestag and do not run opposing campaigns. The CDU/CSU
is loosely organized, containing Catholics, Protestants,
rural interests, and members of all economic classes. It is
generally conservative on economic and social policy and more
identified with the Roman Catholic and Protestant churches
than are the other major parties, although its programs are
pragmatic rather than ideological. Helmut Kohl has served as
chairman of the CDU since 1973; Theo Waigel succeeded the
late Franz Josef Strauss as chairman of the CSU in 1988.
--

Social Democratic Party (SPD):

The SPD is the other
major party in the FRG and is one of the oldest organized
political parties in the world. Historically, it advocated
Marxist principles, but in the "Godesberg Program," adopted
in 1959, the SPD abandoned the concept of a class party,
while continuing to stress social welfare programs. Although
the SPD originally opposed West Germany's 1955 entry into
NATO, it now emphasizes German ties with the alliance.
However, the SPD often has opposed specific NATO programs and
has advanced its own proposals under the banner of "security
partnership" with the East. The SPD has a powerful base in
the bigger cities and industrialized Laender. Bjoern Engholm
became the SPD chairman in May 1991.
--

The Free Democratic Party (FDP):

The FDP has
traditionally been composed mainly of middle- and upper-class
Protestants who consider themselves "independents" and heirs
to the European liberal tradition. Although the party is
weak on the state level, it has participated in all but three
postwar governments and has spent only 7 years out of
government in the 40-year history of the Federal Republic.
Otto Graf Lambsdorff was elected chairman of the FDP in 1988.
A leading figure in the party is Hans-Dietrich Genscher, who
has served since 1974 as the West German Vice Chancellor and
Foreign Minister in coalition governments with both the SPD
and the CDU/CSU.
--

The Party of Democratic Socialism (PDS):

Under
chairman Gregor Gysi, the PDS is the successor party to the SED
(communist party). Established in December 1989, it
renounced most of the extreme aspects of SED policy, but has
retained much of the ideology of the SED. In the December
1990 all-German elections, the PDS gained 10% of the vote in
the territory of the former GDR and 17 seats in the
Bundestag. However, having won only 0.3% of the vote in
western Germany, it is questionable whether the PDS will win
representation in the next German election, when the 5%
hurdle will apply throughout all of Germany.
--

Greens:

In the 1970s, environmentalists organized
politically as the Greens. Opposition to expanded use of
nuclear power, to NATO strategy, and to aspects of highly
industrialized society were the principle campaign issues.
The Greens received 8% of the vote in the January 1987 West
German national election. However, in the December 1990 all-
German elections, the Greens in western Germany were not able
to clear the 5% hurdle required to win seats in the
Bundestag. It was only in the territory of the former GDR
that the Greens, in an alliance with Alliance 90 (a loose
grouping of left-wing political entities with diverse
political views), were able to clear the 5% hurdle and win
Bundestag seats.

ECONOMY

Germany ranks among the world's most important economic
powers. From the 1948 currency reform until the early 1970s,
it experienced almost continuous economic expansion, but real
growth in gross national product (GNP) slowed and even
declined from the mid-1970s through the recession of the
early 1980s. Since then, however, the FRG has experienced 8
consecutive years of economic growth. The German economy
grew 4% in 1989 and should equal that performance again in 1990.
Germans often describe their economic system as a "social
market economy." Competition and free enterprise are
fostered as a matter of government policy. However, the
state also intervenes in the economy through the provision of
subsidies to selected sectors and the ownership of some
segments of the economy, including such public services as
railroad, airline, and telephone systems. The German government
also provides an extensive network of social services.
The FRG economy is heavily export oriented, with one-third of
its national output shipped abroad annually. As a result,
exports have traditionally been a key element in German
macro-economic expansion. Over the past 2 years, however,
domestic demand has been the main engine of economic growth.
The FRG has long been a strong advocate of closer European
economic integration, and its economic and commercial policies are
increasingly determined by agreements among EC members.
Outside the EC, the United States, Austria, and Switzerland
are the FRG's major trading partners. The United States had
sales of about $20 billion (a 7.6% share of the FRG import
market) in 1988. In that year, the FRG exported goods valued
at about $25 billion to the United States (an 8% share of the
US import market), including motor vehicles, machinery,
chemicals, and electrical equipment. US sales to the FRG are
concentrated in chemicals, machinery, edible fats and oils,
aircraft, electrical equipment, and motor vehicles.
The FRG has followed a liberal policy toward foreign
investment. About 65% of US capital invested in the FRG is
in manufacturing--the largest share in the automobile
industry--and another 25% is in petroleum. Total US assets
in the FRG amounted to $20 billion at the end of 1988.
German capital has come increasingly to the United States. At
the end of 1988, net FRG direct investment amounted to $27 billion.
With the unification of the two German states, the FRG faces
the complex task of rapidly introducing a market economy in
the East. Since overall productivity in the former GDR was
less than half that in the FRG, closing the economic gap
between East and West will be a major undertaking. The poor
condition of basic infrastructure and widespread environmental
damage in the East will further complicate the process of economic
integration. Private investment in eastern Germany has been slower
than expected, in large part since the issue of property ownership in
the former GDR has proven difficult to resolve. But most observers
nevertheless continue to believe that after an initial period of
economic adjustment, eastern Germany will enter into an era of
rapid and sustained economic growth.

Principal US Officials

Ambassador--Vernon A. Walters
Deputy Chief of Mission--George F. Ward
Minister-Counselor for Political Affairs--Douglas H. Jones
Minister-Counselor for Economic Affairs--Donald B. Kursch
Minister-Counselor for Commercial Affairs-- John W. Bligh, Jr.
Minister-Counselor for Administrative Affairs--Harold W. Geisel
Minister-Counselor for Consular Affairs--Norman A. Singer
Minister-Counselor for Public Affairs--Cynthia J. Miller
The US embassy is located at Deichmanns Aue 29, 5300 Bonn 2
(tel. 0228-3391). A US embassy office is in Berlin, and consulates
general are at Frankfurt, Hamburg, Munich, and Stuttgart. A
consulate general is scheduled to open in 1991 in Leipzig.

FOREIGN RELATIONS

The unified Germany continues to emphasize close ties with the
United States, membership in NATO, progress toward further West
European integration, and improved relations with Eastern Europe.
The FRG took part in all of the joint postwar efforts aimed at closer
political, economic, and defense cooperation among the countries of
Western Europe. The FRG is also a strong supporter of the
Conference on Security and Cooperation in Europe (CSCE), which
seeks to reduce tensions and improve relations among the European
nations, the US, and Canada.
During the postwar era, the FRG sought to improve its
relationship with the countries of Eastern Europe, initially
establishing trade agreements and, subsequently, diplomatic
relations. With unification, German relations with Eastern
Europe have intensified. The FRG and Poland signed a treaty
confirming the Oder-Neisse border on November 14, 1990, and
are negotiating a broader agreement to cover bilateral
relations. The FRG has also concluded four treaties with the
Soviet Union covering the overall bilateral relationship,
economic relations, the withdrawal of Soviet troops in the
territory of the former GDR, and FRG support for these troops.

US-GERMAN RELATIONS

US-German relations have been a focal point of American
involvement in Europe since the end of World War II. The FRG
stands at the center of East-West relations, as well as of US
relations with the West Europeans in NATO and the European
Community.
But German-American ties extend back to the colonial era.
More than 7 million Germans have immigrated over the last
three centuries, and today nearly 25% of all US citizens can
claim German ancestry. In recognition of this heritage and
the importance of modern-day US-German ties, Congress has
declared October 6 to be "German-American Day."
The US objective in Germany remains the preservation and
consolidation of a close and vital relationship with the FRG
not only as friends and trading partners but also as allies
sharing common institutions. During the 45 years in which
Germany was divided, the US role in Berlin and the large
American military presence in West Germany served as symbols
of US commitment to the preservation of peace and security in
Europe. Since German unification, the US commitment to these
goals has not changed. American policies continue to be shaped by
the awareness that the security and prosperity of the United States
and Germany depend--to a major degree--on each other.
As allies in NATO, the United States and Germany work side by
side to maintain peace and freedom. This unity and resolve
made possible the successful conclusion of the 1987 US-USSR
Intermediate-Range Nuclear Forces Treaty (INF), the Two-plus-
Four process which led to the Final Settlement Treaty, and
the November 1990 conventional armed forces in Europe (CFE)
agreement.
As two of the world's leading trading nations, the United
States and the FRG share a common, deep-seated commitment to
an open and expanding world economy. After the United
States, Germany is the world's second leading trading nation.
It is the fourth largest trading partner of the United States.
Personal ties between the United States and the FRG extend
beyond immigration to include lively foreign exchange
programs, booming tourism in both directions, and the
presence in the FRG of large numbers of American military
personnel and their dependents.
The United States and the FRG have built a solid foundation of
bilateral cooperation in a relationship that has changed significantly
over four decades. The historic unification of Germany and the role
played by the United States in that process has served to strengthen
ties between the two countries. The relationship now constitutes a
mature partnership but remains subject to occasional
misunderstandings and differences. These strains tend to reflect
the importance, variety, and intensity of US-FRG ties and respective
interests rather than fundamental differences.
German-American political, economic, and security
relationships continue to be based on close consultation and
coordination at the most senior levels. High-level visits
take place frequently, and the United States and the FRG
cooperate actively in international forums.

BERLIN

The Final Settlement Treaty ends Berlin's special status
since 1945 as a separate area under Four Power control. By
the terms of the treaty between the FRG and the GDR, Berlin
becomes the capital of a unified Germany, but a decision on
the seat of government has been left to the Bundestag elected
in December 1990. Berlin is also one of the Federal
Republic's 16 Laender. Its first united government since
1948 also was elected on December 2, 1990.
The opening of the Berlin Wall on November 9, 1989, was a
watershed in the developments which culminated in German
unity on October 3, 1990. The infamous 165-kilometer (103
mi.) wall surrounding the Western sectors of the city has
been torn down, and the city is being physically reunited as
streets, subways, and rail lines are rejoined.
Shortly after World War II, Berlin became the seat of the
Allied Control Council, which was to govern Germany as a
whole until the conclusion of a peace settlement. In 1948,
however, the Soviets refused to participate any longer in the
quadripartite administration of Germany. At the same time,
they also refused to continue to cooperate in the joint
administration of Berlin, drove the government elected by the
people of Berlin out of its seat in the Soviet sector, and
installed a communist regime in its place.
Between then and unification, the Western Allies continued to
exercise supreme authority (effectively only in their
sectors) through the Allied Kommandatura. To the degree
compatible with the city's special status, however, they
turned over control and management of city affairs to the
Berlin Senat (executive) and House of Representatives,
governing bodies established by constitutional process and
chosen on the basis of free elections. The Allies and the
German authorities in the FRG and West Berlin never recognized the
communist city regime in East Berlin or GDR authority there.
During the years of Berlin's isolation 176 kilometers (110
mi.) inside the former GDR, the Western allies encouraged a
close relationship between the government of West Berlin and
that of the FRG. Representatives of the city participated as
non-voting members in the FRG parliament; appropriate West
German agencies, such as the supreme administrative court,
had their permanent seats in the city; and the governing
mayor of Berlin took his or her turn as president of the
Bundesrat. In addition, the Allies carefully consulted with
the FRG and Berlin governments on foreign policy questions
involving unification and the status of Berlin.
The Quadripartite Agreement on Berlin in 1971 also provided
for practical improvements in the life of Berliners. It made
possible unhindered civilian access to Berlin and greater
freedom of movement between the eastern and western sectors
for a period of 20 years, in addition to containing a Soviet
acknowledgment of the ties that had grown between West Berlin
and the FRG, including the latter's right to represent Berlin abroad.
Between 1948 and 1990, major events such as fairs and
festivals were sponsored in West Berlin, and investment in
commerce and industry was encouraged by special concessionary
tax legislation. The results of such efforts, combined with
effective city administration and the Berliners' energy and
spirit, have been encouraging. Berlin's morale has been
sustained, and its industrial production has considerably
surpassed the prewar level. Although the Allies' responsibility has
ended, they have been asked to maintain a military presence in the
city until the Soviets have withdrawn completely.

TRAVEL NOTES

Climate and clothing:

Germany is in the temperate zone
but is cooler than much of the United States, especially in
summer. Lightweight summer clothing is seldom needed.

Customs and immigrations:

No visa is required of US
citizens. Innoculations are not required.

Health:

Community sanitation and cleanliness standards
are high. Drinking water, dairy products, and other foods are under
strict government control and generally meet or exceed US
standards.

Telecommunications:

Telephone and telegraph services,
domestic and international, are efficient, although it is
still difficult to telephone from the territory of the former
GDR. Bonn is 6 hours ahead of eastern standard time.

Transportation:

Frankfurt's international airport is a
center of European air traffic. Most airlines operate
services to the FRG. Express trains are available. An
extensive network of highways (Autobahnen) connects most
major cities. Car rentals are expensive but widely
available. Third-party liability insurance is mandatory.
Mass transportation facilities (trains, streetcars, subways)
are crowded but efficient. Taxis are available in all cities.

HOW TO ORDER BACKGROUND NOTES IN PAPER

Published by the United States Department of State -- Bureau
of Public Affairs -- Office of Public Communication --
Washington, DC -- June 1991 -- Editor: Susan Holly
Department of State Publication 7834
Background Notes Series -- This material is in the public
domain and may be reprinted without permission; citation of
this source is appreciated.
For sale by the Superintendent of Documents, US Government
Printing Office, Washington, DC 20402.
Contents of this publication are not copyrighted unless
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